Electronics and electrical industries

Distributors: make room for the little guys

Article Abstract:

Industry research reveals that large and small distributors are flourishing despite some who believe incorrectly that small distributors are likely to fade away. Industry experts indicate that the period between 1992 and 1995 was the strongest in a long time with expansion rates of more than 20%. However, 1996 projections are expected to be around 10%, and small distributors may feel the change the most. Big distributors are looking to automation to reduce general administrative and sales expenses, but smaller distributors with sales of under $50 million are having more difficulty in achieving operating efficiencies achieved by larger distributors. Some observers suggest that smaller distributors are sought out by some customers because they like accessing a specialist in a geographic or product area, or they like the proximity of smaller distributors.

PC business is brisk for electronics distributors

Article Abstract:

Electronics distributors are benefiting from the strong PC market. For the top five component distributors, sales have increased to $3.4 billion in 1995 from a 1992 level of $1.4 billion. Component distributors as a whole have experienced 30% growth over two consecutive years, more than any other industry segment. One reason for their growth is their marketing to both value-added resellers (VAR) and OEMs, something they did not do in the past. Besides selling components, these distributors are also branching out into subsystem manufacturing and system integration. Component distributors catering to the government market have not prospered in recent years as the industry as a whole has, but even that segment is beginning to show signs of improvement. The defense electronics market is half of what it was in the 1980s.

Distributors map out global expansion

Article Abstract:

Distributors in the electronics industry are laying the groundwork to expand their services overseas. Two popular electronics distributors who have pioneered the idea of global distribution are Arrow Electronics Inc and Avnet Inc. Companies that are following in these leaders' footsteps include Wyle Electronics, Pioneer Standard Electronics and Sager Electrical Supply Co. Analysts say that the best way to anticipate the global expansion of electronics distribution is to study the American expansion of the late 1980s; the international version is likely to follow some of those trends. Those resellers that do not become global in their scope will be required to assume niche roles in niche markets. The European market will be the easiest for American distributors to initially break into.